Jakemann Racing

How are buyers viewing the current housing market? With the sudden turn of the economy, buyers are now in control with the historically low interest rates and supply exceeding demand in the current housing market. Buyers are no longer under the finger of the sellers.

Has it truly become a buyer’s market?

Everyone agrees the market belongs to the buyers. Buyers are on the lookout for their perfect home at the perfect price. They search for the bargain of their dreams while the sellers hope to keep their shirts.

Many people expected a pitch in the housing market after the tax credit of $8,000 expired, but no one was able to foresee the calamity that happened. Directly after the tax credit was unavailable, the housing market started its tumble.

The National Association of Home Builders/Wells Fargo Housing Market Index showed every United States region had lower sales in June compared to May 2010.

Builders are not untouched by this hardship either. Builders of single family homes are cautious of unreliable appraisal practices, contention with foreclosures and short sales, and complications in getting production financing. According to David Streitfield’s June 16, 2010 article in the NY Times, new home construction in May 2010 took a nose dive of 17 percent from April!

The buyers that are in the market have the upper hand in closing negotiations and so are making exceedingly low offers. They think that if someone is selling during these times they must be in a crucial situation. Buyers view buying during the decline in the housing market is simply being intelligent. Sellers see it as buyers using their detriment to their advantage.

Cindy, an Evergreen, CO resident, decided to rent out her house instead of taking a low offer. Although for most times are frantic, she has her bar set on how low she will negotiate..

A Chicago buyer made an offer of $500,000 on a house he was interested in that was listed at $539,000. Before the deal was complete the inspector mentioned he would have to replace the windows eventually. The buyer wheedled the sellers into throwing another $10,000 into the pot to pay for the work.

The buyer would have walked away from the deal if the sellers had not compromised. The buyer said he had a lot of options in this market, and he had the position in this sale. He was correct in his assumption due to the supply exceeding demand in the current housing market. In fact, it is not an uncommon tactic of those negotiating for the buyer to offer a reasonable price to the sellers, and then do the real negotiations when the inspections come in.

Good seller’s agents will present this fact to their sellers. If not, the sellers may fell humilated and upset. A quality buyer’s agent will also be aware of this. Many deals are falling through at the last minute. In a normal stable market the average of last minute deal breakers is 5 percent. In Sacramento, CA Mike Lyon of Lyon Real Estate estimates that 15-17% fall apart during closing in 2010.

On the other hand, the overall sales have gone up since May of 2010. Compared to May of last year, the National Association of Realtors said sales were up 2.7% this May..

Everything works in cycles, and it is anyone’s guess as to how long it will take this buyer’s cycle to complete.

How are buyers viewing the current housing market? With the sudden turn of the economy, buyers are now in control with the historically low interest rates and supply exceeding demand in the current housing market. Buyers are no longer under the finger of the sellers.

Has it truly become a buyer’s market?

Everyone agrees the market belongs to the buyers. Buyers are on the lookout for their perfect home at the perfect price. They search for the bargain of their dreams while the sellers hope to keep their shirts.

Many people expected a pitch in the housing market after the tax credit of $8,000 expired, but no one was able to foresee the calamity that happened. Directly after the tax credit was unavailable, the housing market started its tumble.

The National Association of Home Builders/Wells Fargo Housing Market Index showed every United States region had lower sales in June compared to May 2010.

Builders are not untouched by this hardship either. Builders of single family homes are cautious of unreliable appraisal practices, contention with foreclosures and short sales, and complications in getting production financing. According to David Streitfield’s June 16, 2010 article in the NY Times, new home construction in May 2010 took a nose dive of 17 percent from April!

The buyers that are in the market have the upper hand in closing negotiations and so are making exceedingly low offers. They think that if someone is selling during these times they must be in a crucial situation. Buyers view buying during the decline in the housing market is simply being intelligent. Sellers see it as buyers using their detriment to their advantage.

Cindy, an Evergreen, CO resident, decided to rent out her house instead of taking a low offer. Although for most times are frantic, she has her bar set on how low she will negotiate..

A Chicago buyer made an offer of $500,000 on a house he was interested in that was listed at $539,000. Before the deal was complete the inspector mentioned he would have to replace the windows eventually. The buyer wheedled the sellers into throwing another $10,000 into the pot to pay for the work.

The buyer would have walked away from the deal if the sellers had not compromised. The buyer said he had a lot of options in this market, and he had the position in this sale. He was correct in his assumption due to the supply exceeding demand in the current housing market. In fact, it is not an uncommon tactic of those negotiating for the buyer to offer a reasonable price to the sellers, and then do the real negotiations when the inspections come in.

Good seller’s agents will present this fact to their sellers. If not, the sellers may fell humilated and upset. A quality buyer’s agent will also be aware of this. Many deals are falling through at the last minute. In a normal stable market the average of last minute deal breakers is 5 percent. In Sacramento, CA Mike Lyon of Lyon Real Estate estimates that 15-17% fall apart during closing in 2010.

On the other hand, the overall sales have gone up since May of 2010. Compared to May of last year, the National Association of Realtors said sales were up 2.7% this May..

Everything works in cycles, and it is anyone’s guess as to how long it will take this buyer’s cycle to complete.